Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can anyone help me with these questions? home / study / business / accounting / accounting questions and answers / can anyone help me with

can anyone help me with these questions?

home / study / business / accounting / accounting questions and answers / can anyone help me with this? 1. the capital provided by common shareholders during the period ...

Question: Can anyone help me with this? 1. The capital provided by common shareholders during t...

can anyone help me with this?

1. The capital provided by common shareholders during the period used for calculating the return on common equity equals

a.

the average par value of common stock, capital contributed in excess of par value on common stock, retained earnings, and any other common shareholders equity accounts for the period.

b.

average preferred shareholders equity less average total shareholders equity.

c.

the ending par value of common stock, capital contributed in excess of par value on common stock, retained earnings, and any other common shareholders equity accounts for the period.

d.

ending preferred shareholders equity less ending total shareholders equity.

e.

choices a and b

2. The term _____ describes financing with debt and preferred stock to increase the potential return to the residual common shareholders equity.

a.

trading on the debt

b.

trading on the equity

c.

financial leverage

d.

equity financing

e.

none of the above

38. Igor Corporation's accounts receivable, net of allowance for uncollectibles, were $250,000 at December 31, Year 3, and $350,000 at December 31, Year 4. Net cash sales for Year 4 were $300,000. The accounts receivable turnover was 6.0. Igor's net sales for Year 4 were

a.

$1,500,000

b.

$1,800,000

c.

$2,000,000

d.

$2,100,000

e.

$2,200,000

3. During Year 2, Lamar Corporation purchased $600,000 of merchandise inventory. The cost of sales for year 2 was $660,000 and the ending merchandise inventory at December 31, Year 2 was $60,000. What was the inventory turnover for Year 2?

a.

8.0

b.

7.3

c.

6.6

d.

6.0

e.

6.7

4. Selected data from Carson Corporation's financial statements for the year ended December 31, Year 2 are as follows.

Current ratio

1.4

Quick ratio

0.86

Current liabilities

$450,000

Accounts receivable turnover

6.0

Merchandise inventory turnover

4.0

Rate of return on assets

6.5%

Selected Account Balances at December 31, Year 1:

Accounts receivable

$355,000

Merchandise inventory

190,000

Year 2 Operations

Sales

$1,241,000

Cost of goods sold

800,000

Assuming that prepaid expenses are immaterial, ending merchandise inventory at December 31, Year 2 is

a.

$180,000

b.

$210,000

c.

$220,000

d.

$240,000

e.

$260,000

King Products Corporation

King Products Corporation

Statement of Financial Position

(in thousands)

June 30

Year 6

Year 5

Cash

$ 60

$ 50

Marketable securities (at market)

40

30

Accounts receivable (net)

90

60

Inventories (at lower of cost or market)

120

100

Prepaid items

30

40

Total current assets

$ 340

$280

Long-term investments (at cost)

50

40

Land (at cost)

150

150

Building (net)

160

180

Equipment (net)

190

200

Patents (net)

70

34

Goodwill (net)

40

26

Total long-term assets

$ 660

$630

Total assets

$1,000

$910

Notes payable

$ 46

$ 24

Accounts payable

94

56

Accrued interest

30

30

Total current liabilities

$ 170

$110

Notes payable, 10% due 12/31/Year 12

20

20

Bonds payable, 12% due 6/30/Year 15

30

30

Total long-term debt

$ 50

$ 50

Total liabilities

$ 220

$160

Preferred stock-5% cumulative, $100 par, non-participating, authorized, issued and outstanding, 2,000 shares

200

200

Common stock-$10 par, 40,000 shares authorized, 30,000 shares issued and outstanding

300

300

Additional paid-in capital--common

150

150

Retained earnings

130

100

Total shareholders' equity

$ 780

$750

Total liabilities and shareholders' equity

$1,000

$910

King Products Corporation

Income Statement

For the year ended June 30

(in thousands)

Year 6

Net sales

$600

Costs and expenses

Cost of goods sold

440

Selling, general, and administrative

60

Interest expense

10

Income before taxes

$ 90

Income taxes

45

Net income

$ 45

5. Refer to the King Products Corporation example. King Products Corporation's inventory turnover for the fiscal year ended at June 30, Year 6, was

a.

3.7

b.

4.0

c.

4.4

d.

5.0

e.

none of the above

6. Refer to the King Products Corporation example. King Products Corporation's accounts receivable turnover for the fiscal year ended at June 30, Year 6, was

a.

4.9

b.

5.9

c.

6.7

d.

8.0

e.

none of the above

7. Refer to the King Products Corporation example. King Products Corporation's average collection period for the fiscal year ended at June 30, Year 6, using a 360-day year, was.

a.

36 days

b.

45 days

c.

54 days

d.

61 days

e.

none of the above

8. Refer to the King Products Corporation example. King Products Corporation's quick (acid test) ratio at June 30, Year 6, was

a.

0.6

b.

1.1

c.

1.8

d.

2.0

e.

none of the above

9. The traditional use of the term _____ financial statements refers to projected financial statements based on some set of assumptions about the future. One set of assumptions might be that historical patterns (for example, growth rates or rates of return) will continue.

a.

what-if

b.

estimated

c.

Planned

d.

pro forma

e.

Future

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technologies In Accounting And Auditing A Post-Soviet Approach

Authors: Sergiy Ivakhnenkov

1st Edition

3639285395, 978-3639285390

More Books

Students also viewed these Accounting questions

Question

List behaviors to improve effective leadership in meetings

Answered: 1 week ago